Dubai’s prime residential markets are experiencing a significant supply shortage, with the number of available homes falling by 47 percent over the past 12 months to just 2,851 properties, according to global property consultant Knight Frank. The affluent neighborhoods of Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, and The Palm Jumeirah are particularly affected by this dramatic decrease.
Relentless demand from global super-rich
Faisal Durrani, partner and head of Research at Knight Frank’s MENA division, attributed this decline to relentless demand from the global super-rich. “The global super-rich remain fixated by Dubai, which is overwhelming the supply of luxury homes in the city,” Durrani said. This builds on findings from Knight Frank’s 2024 “Destination Dubai” report, which found that $4.4 billion of global private capital is actively targeting the emirate’s residential market this year – a 76 percent increase from 2023.
Surge in Dubai’s prime residential market
As a result, Dubai’s prime residential market has witnessed a surge in performance in recent months. Average transacted prices in the city’s most affluent neighborhoods reached AED3,706 per square foot during the first half of 2024, a 7 percent increase compared to the same period in 2023. The Palm Jumeirah led the market with 853 home sales, accounting for 89.3 percent of prime deals.
Dubai dominates ‘$10 million+’ home sales
Dubai continues to dominate the ‘$10 million+’ home sales market, solidifying its position as the deepest market in this price bracket. The emirate recorded 431 sales above $10 million in 2023, 80 percent higher than the next closest market, London. The first half of 2024 saw an additional 190 sales in this exclusive category. However, the number of home listings valued more than $10 million fell by 65.5 percent over the past year to just 460 properties, reflecting a ‘buy-to-hold’ buyer profile among international high-net-worth individuals.
Robust demand for ultra-luxury homes
Demand for ultra-luxury homes priced above $25 million also remains robust, with the number of such sales growing by 25 percent in the last three months alone, taking the tally for the first half of 2024 to 21 – a remarkable increase compared to the average of less than three sales per year between 2015 and 2021.
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